Funding Solutions for the local SME. Community. beyond accounts. Introduction. Attendees introduction & what do you want to get from today s Workshop?

Transcription

1 Funding Solutions for the local SME Introduction Community Attendees introduction & what do you want to get from today s Workshop? beyond accounts

2 Funding for Growth - Alternative Finance & Peer-to-Peer Tom Beaumont Head of Business Development Tel: tom@investandfund.com

3 What is modern Alternative Finance? Social i.e. entail some element of peer-to-peer exchange Feature a dynamic marketplace of some kind Online Quick Agile Flexible Not a traditional lending source Constantly changing!

4 Alternative Finance for Businesses Peer-to-Peer Lending Invoice Trading Peer-to-SME Equity Funding Private Equity Business Angels Asset Based Lending Supply Chain Finance Peer to Property Funding

5 Peer-to-Business Lending The invest&fund model: An SME applies for funding The SME is credit scored and put through the underwriting/internal credit committee before being accepted or declined.

6 Peer-to-Business Lending The invest&fund model: On acceptance the SME prepares a sales pitch to appear on the auction market place

7 Peer-to-Business Lending The invest&fund model: Individuals bid to offer money to the borrowing company When the amount of finance is raised other investors can still enter the auction but must bid lower rates than already offered

8 Peer-to-Business Lending The invest&fund model: Once the auction process is ended the company will be offered the finance at the average interest rate that has collectively been offered by all individuals The company has a cooling off period were they can accept or decline the money If accepted the monies are transferred to the company s bank account within hours

9 Peer-to-Business Lending The invest&fund model: The company then makes monthly repayments over the predetermined period of capital and interest until the loan is paid off The platform will then distribute the interest and capital to all the successful individuals at the various interest rates obtained by them

10 How We Assess Applications Talk to the business and meet whenever possible to establish Purpose, amount and term of loan Number of years trading Turnover and profitability Organisational structure and other directorships CCJs Affordability Look at the company s Accounts Future projections Business plan Run full Equifax check and internal credit assessment Talk to the company MD, FD & company accountant/advisors Security taken: Personal/director s guarantees Chattel Mortgages Debentures

11 Advantages of Peer-to-Business Lending Quick and accessible finance for Growth Matchfunding Projects Debt consolidation Promotion campaign Exposes business to a wider UK audience Discounts/rewards for investors Affiliate/Referral scheme Finance for business clients Additional revenue stream Investment opportunities No obligation or early repayment penalties

12 Useful News Sources for P2B Lending General industry news, expert opinions for investors Borrower focussed comparison site Comparison of different platforms Forum for investors and platforms

13 Connect with Fund Invest & Fund Invest & Fund Ltd Invest & Fund Ltd m Spread the Word

14 Funding for Growth Business Plans to Raise Finance Presentation by Jamie Young beyond accounts

15 Business Plans What is the point? A business plan will be required if you wish to secure investment or a loan. It forces the entrepreneur to clarify their business, what it does and how it is going to work. beyond accounts

16 Business Plans Key Advantages A business plan will help you to; Clarify your business idea Spot potential problems Set out your goals Measure your progress beyond accounts

17 Business Plans Key Features A typical business plan will include; Executive Summary The Business Competitors Sales and Marketing Management Operations Financial Forecasts Financial Requirements Assessment of risks Appendices beyond accounts

18 Who is your audience? Business Plans Top Tips Get to the point (consider business model canvas / one page business plan) Marketing knowledge Think like an investor Explain your assumptions in figures beyond accounts

19 Business Plans Top Tips What are you raising funds for? Define performance milestones Risk Analysis Consider your gross profit margins Prepare different plans Keep the business plan short beyond accounts

20 Remember On reading a Business Plan investors are looking for quick reasons why not to invest in your business. They evaluate risk first then reward. Do you have any questions about any of the matters discussed today? Contact details: jamiey@plusaccounting.co.uk Thank you for listening. Disclaimer: The information in this presentation is an overview and does not contain all information necessary. beyond accounts